It's a brand new bull market
and everyone should try to make the best of it, says Ramesh Damani, member of
the BSE. After the pessimism in 2011, the inflow of liquidity has lifted
spirits and the market, so Damani believes that this year will be much better
for equities.
"There
are three things required for new bull market to begin. One is of course
liquidity, which is the mother's milk of a bull market, then you need
skepticism and then you need leadership and I find all of the three present in
some degree or form in our market and in the US market," he said.
While
the worry of lagging fundamentals still exists, Damani says that a
characteristic of huge flows of liquidity is that people gloss over a few bad
quarters of earnings. "It's a very sharp move, almost 30-40% move from the
bottom, so you don't want to miss it," he said.
According
to him, a cocktail of fiscal consolidation, resurgence of reforms and interest
rate cuts could take the Sensex back
to 21,000. "There is a party going on, so participate in it," he
says.
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